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For Week 4, please complete the following for Joe's Fly-By-Night Oil Company, whose financial statements are shown below: See attached For Week 4, please complete
For Week 4, please complete the following for Joe's Fly-By-Night Oil Company, whose financial statements are shown below:
See attached
For Week 4, please complete the following for Joe's Fly-By-Night Oil Company, whose financial statements are shown below: Joe's Fly-by-Night Oil INCOME STATEMENT, 2016 BALANCE SHEET, as of Dec 31, 2016 Sales Cost of goods sold Gross profit S, G & A expenses EBIT Interest Before-tax earnings Taxes Net income ASSETS Cash Accounts receivable Inventory Current assets Equipment (gross) Less Accum Depreciation Equipment (net) Total assets LIABILITIES AND EQUITY Accounts payable Current liabilities Long-term debt Total liabilities Common stock (1,000 shares) Retained earnings Total equity Total liabilities & Equity $10,000 4,000 $6,000 3,000 $3,000 $200 $2,800 1,000 $1,800 EPS Dividends Addition to retained earnings $1.80 $600 $1,200 $5,000 3,000 17,000 $25,000 27,000 (12,000) $15,000 $40,000 $17,000 $17,000 $3,000 $20,000 $7,000 $13,000 $20,000 $40,000 Prepare a ratio analysis for the fiscal year ended Dec 31, 2016. Organize your analysis per the following outline: (1) Liquidity - Current ratio - Quick ratio Comments on liquidity (2) Asset management - Total Asset turnover - Average collection period (ACP) Comments on asset management (3) Debt management - Debt ratio - Times interest earned Comments on debt management (4) Profitability - Net profit margin - Return on Assets (ROA) - Return on Equity (ROE) - Extended Du Pont equation Comments on profitability to include your comments on the sources of ROE revealed by the Du Pont equation (5) Market value ratios - PE ratio - Market to book ratio Comments on the market value ratios For the purposes of this exercise, assume the following data for Joe's Fly-By-Night Oil: Stock price on Dec 31, 2016...$50.00 Number of common shares outstanding on Dec 31, 2016...1,000Step by Step Solution
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